We anticipate that Interloop Limited (ILP) will announce a net profit of PKR 4,643 million (EPS: PKR 3.31), reflecting a 72% year-over-year decline. On a quarterly basis, we project earnings to be PKR 1,613 million (EPS: PKR 1.15), which represents a 36% decrease compared to the previous year. This decline is largely due to the imposition of higher taxes on income from exports.

We expect the company’s topline to decrease by 6% year-over-year, reaching PKR 42,656 million, primarily driven by a reduction in export sales. Gross margins are projected to decline by 43 basis points year-over-year to 22.1% in 4QFY25. This decrease can be attributed to the ramp-up phase of the apparel plant and elevated energy tariffs.

The finance cost is anticipated to be PKR 2,263 million, down 18% year-over-year due to lower interest rates. In addition to these results, we expect the company to announce a cash dividend of PKR 1.00 per share in 4QFY25, down from PKR 2.50 in 4QFY24.

Courtesy – AHL Research